Argentina Sees Surge in Crypto Adoption Amid Soaring Inflation
• 17% of people in Argentina bought crypto in the past 12 months
• 53% of these people bought USD-pegged stablecoins in an effort to protect their savings against inflation
• 79% of respondents used major crypto exchanges to buy their coins
Crypto adoption in Argentina is on the rise as the country faces an ongoing battle with soaring hyperinflation. Last November, a survey conducted by Americas Market Intelligence revealed that 17% of smartphone users in the country had purchased cryptocurrencies in the past 12 months. This number is a 5% increase since the same survey was conducted in November 2021, and could be attributed to the current economic climate of the country.
With Argentina’s inflation rate topping 90% last year, the highest in the world, it’s no surprise that a majority of the respondents who purchased crypto did so as a way to protect their savings against the devaluation of their currency. Of those that had bought cryptocurrencies, 53% stated they had invested in USD-pegged stablecoins.
However, the most popular way of buying crypto in the country was not through over-the-counter or peer-to-peer transactions, but rather through major crypto exchanges. 79% of the respondents reported that they had used crypto exchanges to buy their coins.
This news comes at the same time as an increase in the number of Argentinians being paid in crypto rather than fiat. A leading crypto pay facilitator recently explained that more people than ever were opting to receive their wages in crypto. Furthermore, when news of the country’s economy minister’s resignation was announced in July 2022, investors responded by buying tether in an effort to protect their savings against further economic turbulence.
It’s clear that crypto adoption in Argentina is on the up, with people turning to stablecoins and exchanges in an effort to protect their savings in a time of economic uncertainty. With governments and financial institutions around the world increasingly recognizing the value and potential of crypto, it’s likely that crypto adoption in the country will continue to grow.